You'd think BP stock investors got a boost of euphoria today after Barclays significantly raised its price target. But the forum is still skeptical.
200 pence more
Many investors were surprised by today's increase in the price target from 500 to 700 pence by the British investment bank Barclays. With the reasoning of analyst Lydia Rainforth that zero emissions are becoming more and more important and that BP has a strategy in this regard, the approach to the assessment would have to be changed, reports the dpa news agency.
Thus, carbon management should be seen as a separate business and energy as a service, where BP is a leader. The previous rating of “Overweight” remains in place.
Climate change is pressing
Oil companies will need to make serious changes to continue to meet the expectations of politicians and investors with regard to the climate crisis, according to the Reuters news agency. According to this, the oil giants are using the billions in profits from 2021 to keep their investors happy and are paying out big dividends.
Because the switch to more environmentally friendly energies is risky for the oil companies. Ben Ben Cook, portfolio manager at BP Capital Fund Advisors, is quoted as saying in the Reuters report that it is moving into new areas that offer higher returns to shareholders.
The BP share
The BP share has been heading north again since the end of December. After a clear low in November at around 3.60 euros, the price made it back to four euros at the end of December. After today's increase, the share certificate is currently worth around EUR 4.44.
Some investors in the BörsenNews forum are obviously not euphoric despite the new price target from Great Britain. User Tucsonheide writes: “I'm completely out of here, yesterday I bought Shell for €20.65. They also have an ARP running. I also expect a Divi increase. maybe I come back to BP. Good luck to all of you here and good profits.”
User Kaig11 doesn't quite trust the whole thing either: "700 GBp, that would be €8.38 Would be a house number. MMn but rather unrealistic.” You can find the full entertainment here.
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